Within the framework of the different norms that promote culture and creativity in Colombia, Law 1834, known as the "Orange Economy Law", seeks the strengthening of the institutional and regulatory environment for the development of the creative economy. For this purpose, different bodies of the national government have collaborated on a normative agenda that contemplates different incentives and benefits for the creative and cultural sectors. The decrees issued in recent years complete the normative framework put in place by the General Culture Law enacted in 1997, or by Law 814 of 2003, the "Film Law". In this way, progress has been made in creating promotion mechanisms geared towards different cultural and creative sectors, as well as in encouraging cultural entrepreneurship at different scales.
The norms below have been designed in the framework of the implementation of the Orange Economy policies of the Government of Colombia:
Income tax exemption for companies in the orange economy
Law 2010 of 2019, promoted by the national government to define tax matters, established a seven-year income tax exemption for companies engaged in economic activities that are part of the Orange Economy. Later, decree 286 of 2020 regulated said benefit, establishing the requirements to receive it. This exemption is expected to contribute to the growth of the sector thanks to the investments that companies will be able to make with the money saved in taxes.
Reduction in procedures and paperwork
With a view to promoting cultural sectors such as entertainment, Decree 2106 of 2019 included measures to decrease paperwork and facilitate business procedures for agents in the sector, for example, those related to the management of permits for individual shows in spaces dedicated to the performing arts.
Expansion of the Colombia Film Law
Law 1556 of 2012, known as the "Colombia Film Law", created the Colombia Film Fund, among other measures to promote film productions in Colombian territory. Considering the success of this law since its enactment, Article 177 of the National Development Plan (PND) expanded the audiovisual genres covered by this law. Taking into account the foregoing, decree 474 of 2020 set out parameters by which the Colombia Film Promotion Committee can define audiovisual genres, other than cinema, capable of being covered with the consideration of the Colombia Film Fund. On the other hand, by virtue of Article 178 of the PND, Decree 474 establishes the content, general requirements, management and other pertinent aspects of the Audiovisual Investment Certificate in Colombia referred to in the aforementioned article.
* Consideration and encouragement for the production of audiovisual works in Colombia: The companies that produce audiovisual works, shot entirely or partially within Colombian territory, that celebrate the Filming Colombia Contracts, will have a consideration equivalent to forty percent (40%) of the value of expenses incurred in the country for the concept of cinematographic services contracted with Colombian cinematographic services companies and twenty percent (20%) of the value of expenses in hotels, food and transportation, as long as the conditions established in the resource allocation manual are fulfilled.
* Non-national works of any genre or format, produced or post-produced in Colombia in whole or in part, if previously approved by the Colombia Film Promotion Committee, will give the right to request an audiovisual Investment Certificate in Colombia, removable from the income tax up to an equivalent value of thirty-five percent (35%) of the value produced in Colombia.
Decree 697 of 2020:
On May 26, 2020, Decree 697 of 2020, "Whereby Decree 1080 of 2015, Single Regulatory Decree of the Culture Sector, is added to, and articles 179 and 180 of law 1955 of 2019, Law of the National Development Plan 2018 - 2022, A Pact for Colombia, A Pact for Equity", was issued, with the aim of promoting investment in projects associated with the Cultural and Creative Industries through tax discounts, as well as the delimitation and implementation of the Orange Development Area.
* Tax discounts: Those who invest or make donations in projects associated with the Cultural and Creative Industries will receive a discount of 165% of the real value of the amount contributed, during the taxable period in which they make the investment.
* Orange Development Areas: They are centres of economic and touristic activities that contribute to urban renewal, promote entrepreneurship, tourism, and the recovery and conservation of cultural and natural heritage, as well as access to a varied cultural and creative offer.
Support to the culture sector in the Covid 19 health emergency
By virtue of the declaration of economic, social and economic emergency in the wake of the COVID 19 pandemic, it was possible to take measures to ward off the economic crisis and prevent the extension of the adverse consequences generated by it to those who make up the culture sector. With the leadership of the Ministry of Culture, Decree 475 of 2020 was issued, which facilitates the allocation of monetary aid to agents in the sector.
The previous norms are added to the different efforts that the Colombian government has made since the end of the 20th century to build a normative framework that is favourable to the diversity of cultural expressions. Future administrations are expected to continue pushing for the issuance of regulations that contribute to the strengthening of the different creative and cultural sectors.
* The norms and regulations referenced are recent and it is not possible to fully measure their reach. However, as of the date of this report, 84 companies in the orange economy had benefited from the income tax exemption provided by Decree 286 of 2020.
* The fiscal quotas for decrees 474 and 697 in the period 2020-2 were 91 billion pesos and 300 billion pesos respectively (a total of USD 106,105,834).
|Nom du partenaire||Type d'entité|
Presidency of the Republic
Ministry of Culture
Ministry of Commerce, Industry and Tourism
Ministry of Finance and Public Credit
Department of Taxes and National Customs (DIAN)